A growing number of cardholders face double ATM fees from both the ATM operator and their own bank, pushing transaction costs above 5%, with implications for consumer spending and financial transparency.
Double fees from both the ATM operator and the cardholder's bank are becoming more common with out-of-network ATM use. This fee stacking, often hidden until the bank statement arrives, is raising transaction costs for consumers and calling attention to the lack of transparency in banking fees.
A worker in Bangkok withdraws THB 5,000 (approximately $148) from an ATM operated by a different bank than the one where the worker's salary is paid. The ATM screen warns of a THB 220 (approximately $6.50) fee, the cardholder accepts and withdraws the cash. Three days later, a second THB 50 (approximately $1.50) fee appears on the statement, charged by the cardholder's own bank for using another bank's network. The total cost of the single withdrawal is approximately $8, or roughly 5.4% of the amount withdrawn.
According to the Bank of Thailand's Payment Systems Report, December 2024, out-of-network ATM transactions account for close to 30% of cash withdrawals in the country, and similar patterns are documented by central banks across Southeast Asia, South Asia, Sub-Saharan Africa and Latin America. The second fee is invisible at the moment of withdrawal, and the screen never displays the combined cost.
Issuer and acquirer fees stack on every out-of-network withdrawal
An ATM transaction involves two banks. The acquirer is the bank that owns the physical ATM. The issuer is the bank that issued the cardholder's card. When the cardholder uses an ATM operated by a bank other than their own, both banks recover their costs from the transaction, and both typically charge a fee.
The acquirer's fee is the one displayed on the ATM screen. It is typically a fixed amount of $1.50 to $5 in most markets, presented as a per-transaction charge with the option to cancel before withdrawal. The fee is visible.
The issuer's fee does not appear at the moment of withdrawal. It is charged by the cardholder's own bank for using another bank's network, typically ranges from $1 to $4, and is rarely disclosed at the time. Most issuer terms list it deep in the schedule of fees that customers receive at account opening and do not re-read.
The combined effect is substantial on small withdrawals. On a $50 withdrawal, a $4 acquirer fee plus a $2 issuer fee equals $6, 12% of the amount withdrawn. The percentage falls on larger withdrawals but the absolute cost remains. Repeated weekly, the annual cost runs to $200 to $300 per household.
The pattern extends across markets. The Reserve Bank of India's Annual Report on Payment and Settlement Systems, March 2025, ranks ATM fee stacking among the most-complained-about consumer banking issues. The Central Bank of Nigeria has issued similar guidance. Mexico's Comisión Nacional Bancaria y de Valores has documented analogous structures. Practices vary by institution.
Cardholders avoid the stack by matching the card to the network
The most effective action is to consolidate cash withdrawals to the cardholder's own bank's ATM network. Every major retail bank publishes its ATM locator online and in its app. A single weekly withdrawal at a home-network ATM is typically free; the same withdrawal at any other ATM stacks both fees.
For travel or out-of-area periods, some cards explicitly waive the issuer's foreign-ATM fee. These cards are typically marketed for frequent travellers and are now available in markets including the UAE, Singapore, India and South Africa. Selecting one for travel use eliminates the second fee.
The acquirer's fee, the one displayed on the ATM screen, can be partially avoided by withdrawing larger amounts less frequently. The fee is per-transaction, not per-amount. A single $200 withdrawal incurs the same acquirer fee as a $50 withdrawal; the percentage cost falls accordingly.
Cashback at point-of-sale terminals, supported in many markets including the UK, several Southeast Asian countries and parts of Latin America, bypasses ATM fees entirely. The cashback is processed as part of the card transaction and typically carries no fee at all.
For households that maintain accounts at more than one bank, allocating the right card to the right ATM eliminates the stack on routine withdrawals. The choice happens once, in the wallet; the saving repeats with every cash withdrawal.
Cardholders who match the card to the ATM avoid a fee buried in the schedule
The ATM screen flags the acquirer's fee because the acquirer must obtain consent before charging. The issuer's fee requires no such display, because the cardholder has already consented at account opening — a consent buried in the schedule of fees that almost no one re-reads. The combined cost is documented in central bank consumer-protection reports across every region, and is among the most consistent retail banking complaints in 2026. The cardholder who matches the card to the ATM does not pay it.
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